Against this challenging and fast changing backdrop we have identified some priorities that we believe will be essential during the recovery and as retailers look to build back better through the fourth quarter of 2020 into 2021. Despite the devastating impact on retail staff, there is also an opportunity for retailers to re-engage, retrain and redeploy their workforce to support new organisational priorities. A Closer Look at Property and Casualty Insurance, A Closer Look at Accountant Malpractice Lawsuits, Why Accountants Need Professional Liability Insurance. One of the most common concerns for retail owners is the theft of merchandise. SWOT analysis for industry analysis is an ideal way to find out the basics about the marketplace, customers and overall situation of the existing competitors. Dependency on US Market – Even after having established itself globally, Nike still relies on the U.S Market in terms of sales and revenue.In the fiscal year 2020, about 41% of Nike’s sales came from the U.S, while the rest of 59% came globally. Saudi Arabia Courier, Express, and Parcel (CEP) Market - Growth, Trends, and Forecasts (2020 - 2025). Analysis from retail consultants Javellin Group concluded that the share of UK retail sales captured by ecommerce, which totalled roughly 14 per cent in 2016, will jump to around 34 per cent by 2020. Ecommerce may therefore threaten local independent retail owners who don’t begin to consider adopting a multi-channel, “bricks and clicks” approach. Acting on the lessons learned during the pandemic, retailers have an opportunity and, in some cases, a necessity to reconfigure their supply chains. Still, it’s also important to avoid data breaches by replacing outdated security software and potentially even hiring specialists to keep an eye on the company’s cybersecurity. It’s a sector where customer data is like oil, with efficient mining of it fuelling new personalised communication strategies, targeted marketing and one-to-one engagement. Business needs to change and show the world it’s changed. Want to test the market but unsure where to start? Our CX team is on hand to help. Deloitte LLP is the United Kingdom affiliate of Deloitte NSE LLP, a member firm of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”). Additionally, LVMH Moët Hennessy Louis Vuitton​canceled a receptionfor its 2020 LVMH Prize for Young Fashion Designer… Key cybersecurity threats in the retail sector. How will you become more resilient? As an insurance agent covering the retail industry, it’s essential to understand the most significant potential threats facing this industry’s future. The retail industry is an attractive target for cybercriminals because they retain sensitive payment data. With fewer of us now hitting the shops, are your customers getting the same customer experience online? The best-case scenario that retailers can hope for is a sooner return to normalcy, but even then, it will take some time for all businesses to recover from the pandemic’s effects. This is the case for e-commerce stores and physical locations alike. The Biggest Threats Facing the Retail Industry Posted on October 28, 2020 by AmSuisse As an insurance agent covering the retail industry , it’s essential to understand the most significant potential threats facing this industry’s future. New McKinsey research examines the implications for six sectors. Telecommunications, Media & Entertainment, Regulators & Provision of Services Regulations. Find out how you can enhance your digital presence. Those retailers with a mindset of test, learn and move forward with a minimal viable product have been key to the acceleration of digital in the industry. The luxury market is responding much like the rest of the world when it comes to coronavirus — by shutting things down and pulling back. There retailers who have exited cities because of the high rentals that put more pressure on profitability. “The holiday shopping season is a crucial revenue period for retailers every year, but in 2020, they face a two-pronged threat: managing unprecedented levels of human and attack traffic to their websites and APIs,” said Edward Roberts, application security strategist at Imperva. The State of Fashion 2020 CONTRIBUTORS ACHIM BERG Based in Frankfurt, Achim Berg leads McKinsey’s Global Apparel, Fashion & Luxury group and is active in all relevant sectors including clothing, textiles, footwear, athletic wear, beauty, accessories and retailers spanning from the value end to luxury. Find out in our January 2020 Retail Trends summary video, where Ian Geddes shares his insights and predictions for the year ahead alongside other retail experts. An engine to embrace and harness disruptive change. Our Market Gravity team helps you think big, start small and make things real, fast. Please see About Deloitte to learn more about our global network of member firms. Next up are the big digital transformation trends in retail for 2020. Whilst the first priority for many retailers will be to secure the financial position of the … Consumer spending is the lifeblood of the retail industry. If you want to find out more about the SWOT of Amazon, you’re in the right place. Many brands have had to rapidly scale their digital operations, such as adding more delivery slots, entering new markets and in some cases, introducing new e-commerce capabilities in a matter of days. Retailers must act on the lessons learned during the crisis to create a more diversified and collaborative supply chain. Little did we know that the Retail industry would become almost unrecognisable overnight as a result of the restrictions imposed by the COVID-19 pandemic. Find out what makes AmSuisse different and the benefits to you. Overall, we expect real consumer spending growth to slow to 2.2 percent in 2020 from 2.5 percent in 2019. Keep these facts in mind as you counsel them, and you can help your clients run successful retail businesses while avoiding an insurance fiasco. Shoplifters can cost the industry collective billions per year, resulting in lost money and the expense of replacing the stolen goods. Each year, I take a look at the major digital transformation trends hitting every industry. Retailers should nurture a culture of speedy decision-making and a focus on test and learn. Resilience. COVID-19: Briefing note #11: June 25, 2020 Every industry is adapting to life during a pandemic. Dispatches from AmSuisse: Keeping you in the know. This Amazon SWOT analysis reveals how the largest online retailer used its competitive advantages to become the dominant player in the retail industry. The new retail supply chain will also need to be more collaborative, sustainable and have built in agility to allow for severe fluctuations in demand. Are your customers finding you online? When you’re an insurance agent counseling retail clients about risk management, understanding some of the industry’s biggest threats is key. SWOT is an acronym that stands for strengths, weaknesses, opportunities and threats to a business venture. © 2020. The customer experience also needs to be adapted to make customers feel safe and give them the confidence to return to stores. The good news is, a robust retail risk management strategy can help avoid potential dangers from the get-go, preventing possible liabilities or other insurance-related issues. See Terms of Use for more information. In its advanced monthly sales for retail and food services, April 2020 (PDF, 1954KB) they include the amount spent in the US retail industry, including motor vehicles and parts and food services. For an overview, read our latest briefing materials. SWOT Analysis is a proven management framework which enables a brand like Burberry to benchmark its business & performance as compared to the competitors and industry. AVAILABILITY OF LAND AND REAL-ESTATE: Retail space and rentals are key considerations in multi-brand retail and getting a feasible rate in the desired location is important. Going into 2020, consumers face three key challenges: Gains in the labor market haven’t translated to strong wage growth. Whilst the first priority for many retailers will be to secure the financial position of the business, there is also a need to focus on leadership. Get in touch with us to find out how making your supply chain more transparent and your products more sustainable can boost margins and improve customer loyalty. In April the UN estimated that 4 out of 5 workers globally were impacted by COVID-19 with large numbers furloughed, many of whom faced redundancy. Suite A1 PESTLE example for retail industry as at February 2020 External factors to consider Factors affected within my industry Importance to organisation POLITICAL Government policy Political stability Tax ... past and potential terrorism threats have affected tourism and footfall in shopping malls. Finally, once-rare data breaches or digital theft have unfortunately become increasingly common due to the prevalence of technology and more customers than ever before choosing to shop online. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom. Katy, TX 77450-3891. Changing demographic patterns causing change in consumer buying patterns; Economic uncertainty and regulatory pressures; Trends shaping the retail industry: Opportunities Technology: Technology will drive the growth of the retail industry. 830 South Mason Road There is an opportunity for retailers to re-engage, retrain and redeploy their workforce to support new organisational priorities. One part of a strong risk management strategy that can help offset these damages includes customized commercial property insurance. Online shopping fraud can occur when scams target credit card information, business servers, or organizational systems. Clothing Retailing in the UK industry trends (2015-2020) Clothing Retailing in the UK industry outlook (2020-2025) poll Average industry growth 2015-2020 : x.x lock Purchase this report or a membership to unlock the average company profit margin for this industry. Potential fines of €20 million (£15.3 million) or 4% of turnover are threatened for non-compliance, so what is the retail industry doing to prepare? Our unparalleled writing support, industry-specific  expertise, marketing support, responsive proposals and quotes, strong customer service, and  strong relationships with our carrier partners have all helped us to provide the best possible  coverage for our clients. $ 3250 - $ 2763 - Get 15% off now! However, your clients may not be sure where to start or what they need to do to protect their company in case of an emergency, especially since some of the risks associated with retail seem unpredictable. Despite its fame, Nike depends on the U.S for substantial sales and growth. Whether your clients are concerned about data breaches, theft or another potential problem, preparedness and a solid risk management strategy can help put them in the best possible position. The retail sector is the most vulnerable and most targeted sector when it comes to cyberattacks. We believe these trends are just as relevant today and in many ways the global pandemic have emphasised their importance. A number of designers dropped out of Paris Fashion Week, including Chinese brands Shiatzy Chen, Calvin Luo, Masha Ma, Maison Mai and Uma Wang. What Are the Various Types of P&C Insurance. Threats: Growing competitive pressure from internal and external players. Our original trends centred on the importance of sustainability, having an authentic purpose and the disruptive impact of digital. This may also require a redesign of workspaces and the acceleration of agile working across the organisation. Retailers need to adapt to find new ways to reach and serve their customers. Back in January 2020, we talked about how Retail was changing at an unprecedented speed. The jobs report for October 2020 showed that retail gained nearly 104,000 workers — but the rise in COVID-19 cases remains a threat. SWOT Analysis is a proven management framework which enables a brand like Puma to benchmark its business & performance as compared to the competitors and industry. With many of us reading this from home, find out how the workplace of tomorrow could look a little different. Formed in 2013, AmSuisse, Inc. has quickly distinguished itself as a wholesale operation that  specializes in working very closely with our agents and broker partners to develop responsive,  individualized service for each client. Resilient organisations thrive before, during and after adversity. Distributor denial of service tax or DDoS attacks are a real challenge for retailers, particularly during peak season, and the challenges are that the websites of an organisation might be taken down, or there is also physical disruption, for example shopping centres, lift systems may be … As of 2020, Puma is one of the leading brands in the lifestyle and retail sector. Retail owners should be aware that damage can range from harmed physical structures to power outages resulting in foods spoiling to items being ruined by water and more. What key trends were predicted to shape the world of retail in 2020? Retailers need to ensure that safety measures are put in place to protect customers, employees and suppliers. Tesco Threats 2020 The consequences of Brexit will affect Tesco’s supply chain in Europe as well as its revenue and income. However, UK retailers are not fully prepared for this and are not adequately protecting customers. It identifies all the key strengths, weaknesses, opportunities and threats that affect the company the most. ; October 2020; 240 pages; The market for Courier, Express, and Parcel (CEP) in Saudi Arabia is estimated to be valued at more than USD 970 million and is estimated to grow at a CAGR of more than 6.5% during the forecast period. When natural disasters or severe weather events occur, serious damage to inventory can sometimes take place as well. Retail owners can look out for phishing scams. The withdrawal of Great Britain from the EU will leave UK firms exposed to tariffs and other trade barriers that the bloc imposes on non-member countries, and vice versa for EU firms exporting goods to Great Britain. Explore how with our latest thinking. DTTL and Deloitte NSE LLP do not provide services to clients. In-store, in warehouses and when delivering products there is a need to ensure that safety measures are put in place to protect customers, employees and suppliers. THREAT: A. As of 2020, Burberry is one of the leading brands in the lifestyle and retail sector. SWOT analysis threats Threats can be both internal and external, and are classified as anything that might have an adverse effect on the revenue growth in store. McKinsey continues to track economic and epidemiological developments in Europe and around the world. For retailers, this could be a general decline in consumer demand, price wars with competitors, or a new business that disrupts the market. In some cases, general retail policies may cover some inventory damage as well. DTTL and each of its member firms are legally separate and independent entities. Getting the right mix of digital channels will provide lots of opportunities to drive engagement and growth. Conclusion In conclusion, the Retail Sector has many strengths, weaknesses, opportunities and threats, but the threat of the poor state of the economy outweighs the opportunities because most companies, … Brexit uncertainty had caused spending growth to slow in 2019 and the industry faced large-scale business restructuring with 85,000 jobs lost, a third of FTSE 350 CEOs changing and 9,169 store closures. From domain-spoofing, to Business Email Compromise (BEC) attacks, consumers and suppliers must be … Consumer behaviour has changed and therefore retailers need to adapt to find new ways to reach and serve their customers. In many cases, this type of insurance is available tailored to specific industries. UK retailers aren’t targeted as heavily as their American counterparts, but major British retailers including Superdrug, Dixons Carphone, Cash Converters, Three … Fortunately, retail owners can take a few steps to prevent theft, including: If a retailer needs more protection, they may want to look into specific inventory insurance to cover theft and other loss types. To learn more about our available coverage, contact us today at (855)  912-8697 to speak with one of our representatives. COVID-19 exposed weaknesses that can be mitigated by diversifying supply, improving local sourcing and on-or-near shore manufacturing. Do you know the full story behind the products you sell? In fact, Trustwave’s 2018 Global Security Report found that 17% of all cyberattacks were targeted at retailers. The most recent international estimate of retail sales available for April 2020 was published by the US Census Bureau on 15 May 2020. All it takes is a vulnerable shopper – or supplier – and a cyber-criminal has won. Retail risk management is critical to protecting any business, whether it’s e-commerce or a brick-and-mortar. According to a study by Moody’s Investors Service, the retail industry’s operating income can fall by as much as 30% for 2020, without any operating profits until at least 2022. One of the biggest signs of the industry's response has been its reaction to various fashion weeks. Thu 3 Dec 2020 04.41 EST 4 Christopher Wylie, the whistleblower who exposed the misuse of data by Cambridge Analytica in the run-up to the 2016 US … By Rachel Millard 2 December 2020 • 11:19am Bonmarché has gone into administration for the second time in just over a year, making it the third retail chain to collapse this week. Our UK retail & consumer practice, led by Lisa Hooker, partner and UK Leader of Industry, provides our clients with leading edge advice on issues from governance through to technology, helping businesses manage change, simplify the complex, stay customer focused and operate at a … Find out more about our locations and what it's like to work across all our offices within the UK, Discover our supported hiring opportunities, At Deloitte we believe in diversity in all its forms. Ensuring there is a proactive culture and that decisions are made quickly have been crucial during the COVID-19 pandemic. These four are inseparable factors for a retail business. In some cases, cyber liability insurance can help protect a company when data breaches occur. To drive engagement and growth provide services to clients by diversifying supply, improving sourcing! Shopping fraud can occur when scams target credit card information, business servers, or organizational systems not prepared. 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